Introduction to the Indian Government Accounts and Audit(Lower) Date of Test 19-03-2023


Introduction to the Indian Government Accounts and Audit(Lower)

Date of Test 19-03-2023


1:-_____________ are final payments in the nature of donation of subscription to the grantees

        A:-Grant in aid

        B:-Voluntary contribution

        C:-Budget Allocation

        D:-Appropriation

        Correct Answer:- Option-A


2:-Charges on account of all telegrams relating to currency matters should be debited to

        A:-Reserve Bank

        B:-Post and Telegrams

        C:-Office expenses

        D:-Other charges

        Correct Answer:- Option-A


3:-Local Audit may be distinguished from inspection in that its purpose is to audit the ___________ accounts maintained in certain

Government Institution and offices on the spot

        A:-Initial

        B:-Final

        C:-Random

        D:-None of these

        Correct Answer:- Option-A


4:-Government companies and deemed Government companies setup under the companies Act where Government or Government owned

and controlled institutions own __________ percent or more of the paid up capital

        A:-66

        B:-51

        C:-50

        D:-33

        Correct Answer:- Option-B


5:-___________ records in detail the cash, stock and other charges on each work whether carried out by departmental agency or contract

        A:-Store account

        B:-Works abstract

        C:-Cash Book

        D:-Divisional Accounts

        Correct Answer:- Option-B


6:-The results of the inspection and local audit are set forth in _____________ separate documents

        A:-3

        B:-2

        C:-4

        D:-5

        Correct Answer:- Option-B


7:-The areas covered in ______ audit will naturally vary from enterprise to enterprise  depending on the nature of the enterprise, its

objectives and operations

        A:-Comprehensive

        B:-Accountancy

        C:-Regularity

        D:-Internal

        Correct Answer:- Option-A


8:-The main purpose of the __________ is to bring out by a scientific method the balance of account in regard to which Government acts as a

banker or remitter or borrower or lender

        A:-Financial statement

        B:-Trail Balance

        C:-Journal and Ledger

        D:-Proforma Accounts

        Correct Answer:- Option-C


9:-For purposes of financial control each grant or appropriation is divided into a number of units called

        A:-Sub head

        B:-Sub Major head

        C:-Minor head

        D:-Major heads

        Correct Answer:- Option-A


10:-In ________ of the Accounts, shall be recorded the transactions connected with the contingency fund set up by the Government of India

or of a State or Union Territory

        A:-Part I

        B:-Part II

        C:-Part III

        D:-Part IV

        Correct Answer:- Option-B


11:-Which bank acts as a general clearing house for the adjustment of transactions between different Governments

        A:-Central Accounts Section RBI Nagpur

        B:-State Bank of India

        C:-RBI Mumbai

        D:-RBI New Delhi

        Correct Answer:- Option-A


12:-Under the departmentalized accounting system the _______ of the Ministry/department concerned acts as its chief Accounting Authority

with the assistance of Financial Advisor

        A:-Secretary

        B:-Chief Accounts Officer

        C:-Minister

        D:-None of these

        Correct Answer:- Option-A


13:-Taxes both on residential or non residential buildings owned or occupied by the Defence Department shall be debited to the

        A:-General Budget Estimate

        B:-Economic Services

        C:-Social and Community Services

        D:-Defence Services Estimates

        Correct Answer:- Option-D


14:-As soon as the accounts of a year are closed, the ________ of each Government of State or Union Territory with legislature for the year

are prepared by the Accountant General concerned and submitted to the C and AG for approval

        A:-Proforma Accounts

        B:-Audit Reports

        C:-Finance Accounts

        D:-Technical Accounts

        Correct Answer:- Option-C


15:-Salaries, office expenses represents _____________

        A:-Detailed head

        B:-Minor head

        C:-Sub head

        D:-Sub major head

        Correct Answer:- Option-A


16:-Goods received sheets and the indents are used for posting the ___________

        A:-Cash Book

        B:-Contractors ledger

        C:-Stock ledger

        D:-Priced Stores Ledger

        Correct Answer:- Option-D


17:-At the beginning of each month each Accountant General receives from the treasuries under his jurisdiction _________ supported by the

requisite schedules, vouchers etc in respect of the transaction which took place in the treasury during the previous month

        A:-List of payments

        B:-Cash Balance Report

        C:-Monthly Accounts

        D:-None of these

        Correct Answer:- Option-C


18:-An item debited to an expenditure head instead of to a debt, deposit or remittance head, - correction should be made by debiting the

proper head and crediting __________

        A:-Debt deposit

        B:-Recoveries of service payment

        C:-Expenditure head

        D:-Receipt head

        Correct Answer:- Option-B


19:-The Budget Estimates of Defence are presented in ____________ parts

        A:-Five

        B:-Four

        C:-Three

        D:-Two

        Correct Answer:- Option-A


20:-The Receipts Heads (Capital Account) in the second division shall deal with ___________

        A:-Capital expenditure

        B:-Capital gains

        C:-Revenue receipts

        D:-Receipts of a capital nature

        Correct Answer:- Option-D


21:-The estimate committee consists of ________ Members entirely of Loksabha elected according to the principle of proportional

representation of single transferable.

        A:-20

        B:-25

        C:-30

        D:-35

        Correct Answer:- Option-C


22:-Rent, Rates and Taxes / Royalty will include

        A:-Payment of rent for hired building

        B:-Municipal rates and taxes

        C:-Lease charges for land

        D:-All of the above

        Correct Answer:- Option-D


23:-An important element of Local audit is the examination of adequacy and efficiency of _____________ procedures

        A:-Internal control

        B:-Accounting

        C:-Legal

        D:-Standard operating

        Correct Answer:- Option-A


24:-Non civil Accounts Officers means an Account officer of the

        A:-Home department

        B:-Agriculture department

        C:-Electricity department

        D:-Defence Railway or posts and Telegraph Department

        Correct Answer:- Option-D


25:-The cash balance of each Government in the books of the Accountant General at the close of the month will be reconnected with the balances shown in the cash accounts rendered by Treasury officer and with the statements of closing balance received from the _____ of the Reserve Bank

        A:-Central Account Section

        B:-General Account section

        C:-Treasury Account Section

        D:-Cash Accounts Section

        Correct Answer:- Option-A


26:-Administrative services are classified as

        A:-Public Account

        B:-Contingency Fund

        C:-Expenditure Heads (Revenue Account)

        D:-Plan Expenditure

        Correct Answer:- Option-C


27:-The committee of Public Accounts and public undertaking have ______ members from Lokshabha and ________ members from

Rajyasabha

        A:-12,10

        B:-7, 15

        C:-15, 7

        D:-10, 12

        Correct Answer:- Option-C


28:-The economy and efficiency with which various development programmes and schemes are implemented and programme results

achieved is also checked in ________

        A:-Project Audit

        B:-Test Audit

        C:-Local Audit

        D:-Concurrent Audit

        Correct Answer:- Option-C


29:-After the Audit Reports, Finance Accounts and Appropriation Accounts have been placed before the Parliament, they are examined by

the _____________

        A:-Estimate committee

        B:-Public undertaking committee

        C:-Public Accounts committee

        D:-None of these

        Correct Answer:- Option-C


30:-The dealing with errors and minor irregularities which are not important enough to be brought to the notice of higher authority

        A:-Inspection Report

        B:-Minor Defects

        C:-Major irregularities

        D:-Test Audit Notes

        Correct Answer:- Option-D


31:-____________ is a main instrument to secure accountability of the executive to the legislature

        A:-Cash Book

        B:-Audit

        C:-Balance sheet

        D:-None of these

        Correct Answer:- Option-B


32:-Charges for legal services, consultancy fees, remuneration to examiners, invigilators etc for conducting examinations, remuneration to

casual artists by the All India Radio

        A:-Honorarium

        B:-Fee

        C:-Payment for professional and special services

        D:-Office expenses

        Correct Answer:- Option-C


33:-The cost of Additional Police Guards supplied to an irrigation or other project while under construction may be debited to  the

____________

        A:-Home Department

        B:-Police Department

        C:-Administrative Department

        D:-Project Concerned

        Correct Answer:- Option-D


34:-Statutory corporation and Government companies are given maximum autonomy consistent with the needs of

        A:-Rationality

        B:-Public Accountability

        C:-Sustainability

        D:-None of these

        Correct Answer:- Option-B


35:-Some of the audit tenets followed centuries ago still apply

        A:-Prompt payment of money into treasury

        B:-Checking accounts and conducting local inspection

        C:-Periodical stock verification and checking of stock with accounts

        D:-All of the above

        Correct Answer:- Option-D


36:-It is the duty of ____________ to make recommendation regarding the distribution of Income Tax and Union excise duties between the

Union and the State

        A:-Accountant General

        B:-Finance Commission

        C:-Ministry of Finance

        D:-None of these

        Correct Answer:- Option-B


37:-The _____________ which is called the combined Finance and Revenue Accounts of the Central and State Governments in India, presents

the transactions of all the Government side by side.

        A:-Balance Sheet

        B:-Finance Account

        C:-General Financial Statement

        D:-Account current

        Correct Answer:- Option-C

38:-When any land or building is transferred from one service Department to another under the Kerala Government the transfer should

_______________

        A:-Not be made free of charge

        B:-Made free of charge

        C:-be at the cost of the receiving department

        D:-None of these

        Correct Answer:- Option-B

39:-Government Corporations generally maintain accounts on ____________ lines

        A:-Commercial

        B:-Statutory

        C:-Government

        D:-Civil

        Correct Answer:- Option-A

40:-An audit does not entail the preparation of the accounts at all but deals with something much wider, the examination of

        A:-Books, Voucher and accounts

        B:-Profit and loss account

        C:-Balance sheet

        D:-All of the above

        Correct Answer:- Option-D

41:-The ____________ is responsible for enforcing economy in the expenditure of public moneys

        A:-Legislature

        B:-Executive Government

        C:-Judiciary

        D:-Accountant General

        Correct Answer:- Option-B

42:-An ____________ purports to be an extract from the books of the officer who dispatches it and to show the amount he has passed to debit

or credit of the other party to the account

        A:-Current Accounts

        B:-Account current

        C:-Book Adjustments

        D:-Cash Account

        Correct Answer:- Option-B

43:-The procedure to be followed for the payment of money into the public account of the state is regulated by Law made by

        A:-State legislative

        B:-Parliament

        C:-Loksabha

        D:-Governor

        Correct Answer:- Option-A

44:-Reappropriation from one grant or appropriation to another grant or appropriation is ____________

        A:-Permissible

        B:-Nor permissible

        C:-Permitted with specific condition

        D:-None of these

        Correct Answer:- Option-B

45:-The Finance Bill containing the annual taxation proposals is considered and passed by the legislative only after the _______ have been

voted and the total expenditure is known

        A:-Appropriation

        B:-Demands for grants

        C:-Reappropriation

        D:-Explanatory memorandum

        Correct Answer:- Option-B

46:-Secret service expenditure comes under

        A:-Sub major head

        B:-Sub head

        C:-Detailed head

        D:-Minor head

        Correct Answer:- Option-C

47:-The transit pay and allowance, both ways of officers of the Defence or Railway Department/sent to civil Department or vice versa are

debitable to

        A:-Budget grant

        B:-Lending Department

        C:-Borrowing Department

        D:- None of these

        Correct Answer:- Option-C

48:-Agricultural Income tax, Taxes on profession comes under

        A:-State - Indirect Taxes

        B:-State - Direct Taxes

        C:-Non - Tax receipts

        D:-Union - indirect Taxes

        Correct Answer:- Option-B

49:-Expenditure on a temporary asset cannot ordinarily be considered as expenditure of a ___________ nature

        A:-Revenue

        B:-Capital

        C:-Deferred

        D:-None of these

        Correct Answer:- Option-B

50:-__________ forms an indispensable part of the financial system and is one of the important organs necessary to ensure the sound

functioning of a parliamentary democracy.

        A:-Budgeting

        B:-Audit

        C:-Accounting

        D:-None of these

        Correct Answer:- Option-B

51:-Washing allowance paid to Class IV Government Servant shall be classified under __________

        A:-Wages

        B:-Salaries

        C:-Office expenses

        D:-Other charges

        Correct Answer:- Option-B

52:-A tax assessment is a ___________ act, a non tax revenue is purely and administrative decision

        A:-Quasi - Judicial

        B:-Judicial

        C:-Non Judicial

        D:-None of these

        Correct Answer:- Option-A

53:-___________ Audit is based on the accounts, vouchers, schedules and other documents submitted to them by the various disbursing

outlets.

        A:-Statutory

        B:-Commercial

        C:-Central

        D:-Civil

        Correct Answer:- Option-C

54:-The Fire Forces department may charge other departments at the rate of __________ per fire extinguisher for pressure testing

        A:-Rs. 5

        B:-Rs. 4

        C:-Rs. 3

        D:-Rs. 2

        Correct Answer:- Option-C

55:-_________ division deal with the proceeds of taxation and other receipts classed as revenue and expenditure met there from

        A:-Third Division

        B:-2nd Division

        C:-1st Division

        D:-None of these

        Correct Answer:- Option-C

56:-The distribution of the legislative powers between the Union and States is governed by _____ of the constitution

        A:-Art 244

        B:-Art 245

        C:-Art 246

        D:-Art 247

        Correct Answer:- Option-C

57:-The _____________ is the chief Accounting Officer of the Defence Services

        A:-Financial Advisor (Defence Services)

        B:-Executive Director (Defence Services)

        C:-Finance Controller (Defence Services)

        D:-None of these

        Correct Answer:- Option-A

58:-The ___________ are responsible for the distribution of funds in their jurisdiction

        A:-Chest Branch of State Bank

        B:-Currency Officer

        C:-District Treasury Officer

        D:-Finance Secretary

        Correct Answer:- Option-B

59:-The Scope of State Audit encompasses the elements of

        A:-Fiscal accountability

        B:-Managerial Accountability

        C:-Programme Accountability

        D:-All of the above

        Correct Answer:- Option-D

60:-The Audit Report on _________ presents to the legislative the Revenue position of the Government of India under Tax and non-tax

sources

        A:-Capital Receipts

        B:-Revenue Expenditure

        C:-Capital expenditure

        D:-Revenue Receipts

        Correct Answer:- Option-D

61:-The incidental objects of commercial audit, flowing automatically may be said to be __________

        A:-Detection / prevention of fraud

        B:-Detection / prevention of technical errors

        C:-Detection of errors of principles

        D:-All of the above

        Correct Answer:- Option-D

62:-The expenditure on Government residential building will be accounted for under the major head

        A:-2059

        B:-2216

        C:-2053

        D:-2217

        Correct Answer:- Option-B

63:-Central audit is by and large _________

        A:-Propriety audit

        B:-Local audit

        C:-Statutory audit

        D:-Regularity  and propriety audit

        Correct Answer:- Option-D

64:-While conducting _________ Audit, audit will not only see whether there is proper authority for expenditure but will also investigate the

necessity for it

        A:-Statutory

        B:-Propriety

        C:-Internal

        D:-Local

        Correct Answer:- Option-B

65:-Economy efficiency and ________ are the three E's of Audit

        A:-Empowerment

        B:-Estimation

        C:-Examination

        D:-Effectiveness

        Correct Answer:- Option-D

66:-Power to modify the "Local Rulings" in Kerala Account code vest with the

        A:-Kerala Government

        B:-Accountant General

        C:-Director of Treasury

        D:-None of these

        Correct Answer:- Option-A

67:-The fundamental object of audit is to secure real value for the ________ Money

        A:-Government

        B:-Tax payers

        C:-Employees

        D:-None

        Correct Answer:- Option-B

68:-A loss of cash due to acceptance of counterfeit coins or notes and any amount transferred from the treasury balance in order to make

good any deficiency found in the currency chest should be debited under the head ______

        A:-Advances Repayable

        B:-Contingencies

        C:-Suspense

        D:-None of these

        Correct Answer:- Option-A

69:-The approach of audit is systematic ________ and logical

        A:-Optimistic

        B:-Methodical

        C:-Irrational

        D:-None of these

        Correct Answer:- Option-B

70:-Recoveries on account of commuted value of pensions effected from other Governments should be treated as

        A:-Receipt

        B:-Revenue

        C:-Revenue Expenditure

        D:-Deductions from expenditure

        Correct Answer:- Option-D

71:-Certain proforma accounts relating to irrigation, Navigation, Embankment and Drainage projects and Government residential buildings

are required to be prepared by

        A:-Commercial Account offices

        B:-Civil Account Offices

        C:-Irrigation offices

        D:-Navigation and Embankment Department

        Correct Answer:- Option-B

72:-Appropriation Accounts of each state Government and Union Territory with legislative are prepared by the _______ and submitted to the

comptroller and auditor General of India for approval

        A:-Accountant General

        B:-Director of Treasuries

        C:-Chief Secretary

        D:-Finance Secretary

        Correct Answer:- Option-A

73:-A test check  of the leave accounts including accounts of persons likely to retire or likely to complete __________ years of qualifying

service are checked in detail

        A:-24

        B:-26

        C:-28

        D:-30

        Correct Answer:- Option-D

74:-In part III of the Accounts, the transaction relating to

        A:-Debt, Deposit, Remittance

        B:-Receipt Heads

        C:-Expenditure Heads

        D:-Consolidated fund

        Correct Answer:- Option-A

75:-The work of audit in relation to regularity of expenditure of a ___________ character

        A:-Executive

        B:-Judicial

        C:-Quasi judicial

        D:-Administrative

        Correct Answer:- Option-C

76:-A __________  is termed as an object classification

        A:-Major Head

        B:-Sub Head

        C:-Minor Head

        D:-Detailed Head

        Correct Answer:- Option-D

77:-The Government of __________ have not so far entered into agreement with Reserve Bank of India for conduct of their general banking

business by the Bank

        A:-Sikkim

        B:-Jammu Kashmir

        C:-Himachal Pradesh

        D:-Punjab

        Correct Answer:-Question Cancelled

78:-__________as a general rule, be taken in reduction of revenue deposits

        A:-Waiver of revenue

        B:-Refund of Revenue

        C:-Remission of Revenue

        D:-Write off

        Correct Answer:- Option-B

79:-L-Suspense and miscellaneous comes under ______

        A:-Public Account

        B:-Contingency fund

        C:-Consolidated fund

        D:-Exchange Accounts

        Correct Answer:- Option-A

80:-The pay and allowances of the comptroller and Auditor General, pension etc, payable to retired Comptroller and Auditor General and

administrative expenses of his personal staff shall be charged upon

        A:-Consolidated fund of India

        B:-Public Account

        C:-Contingency Fund

        D:-None of these

        Correct Answer:- Option-A

81:-The cost of acquisition of land and structure will be classified under

        A:-Maintenance

        B:-Other charges

        C:-Major works / minor works

        D:-None of these

        Correct Answer:- Option-C

82:-When the pensioner dies, the family pension is paid by the Treasury officer, after getting death certificate, to the eligible pensioner

without any reference to ______________

        A:-Government

        B:-Head of office

        C:-Account office

        D:-Director of Treasuries

        Correct Answer:- Option-C

83:-Forest revenue Royalties from mines and minerals are ___________

        A:-State Direct Tax

        B:-Indirect Tax

        C:-Non tax receipts

        D:-Union Direct Tax

        Correct Answer:- Option-C

84:-The Audit of the C & AG is comprehensive and includes

        A:-Regularity Audit

        B:-Propriety Audit

        C:-Efficiency cum performance Audit

        D:-1, 2 and 3

        Correct Answer:- Option-D

85:-Interpretation of Law is a _________ function

        A:-Quasi Judicial

        B:-Non Judicial

        C:-Judicial

        D:-Administrative

        Correct Answer:- Option-C

86:-No money can be withdrawn from the consolidated fund, until the bill is passed by the __________

        A:-Governor

        B:-Finance Minister

        C:-Legislature

        D:-Chief Minister

        Correct Answer:- Option-C

87:-Transfer entries are prepared to transfer an item from one head of account to another in order to

        A:-Correct an error of classification in the original accounts

        B:-Adjust by debit or credit to its proper head, an item outstanding under debt, deposit or remittance head

        C:-Both 1 and 2

        D:-None of these

        Correct Answer:- Option-C

88:-The amounts written off by the Accountant General should be reported to the comptroller and Auditor General of India annually by

____________

        A:-30th September

        B:-31st October

        C:-5th November

        D:-10th November

        Correct Answer:- Option-D

Question89:-The ________ of the central Government which are required to be submitted by the C & AG to Central Government are prepared by the

Accountant General, Central Revenues

        A:-Proforma Accounts

        B:-Exchange Accounts

        C:-Settlements Accounts

        D:-Finance Accounts

        Correct Answer:- Option-D

90:-Ordinarily all amounts due to Government which are found to be irrecoverable shall be written off from the _____________ of account

concerned to and expenditure head as a loss to Government

        A:-Debt Head

        B:-Loan Head

        C:-Receipt Head

        D:-Remittance head

        Correct Answer:- Option-A

91:-Pension payment order is not issued more than _______ in advance of the date on which the officer is due to retire

        A:-a week

        B:-a month

        C:-Three days

        D:-A fortnight

        Correct Answer:- Option-D

92:-Budget comprises Revenue Budgets and _________

        A:-Detailed Budget

        B:-Performance Budgets

        C:-Capital Budgets

        D:-Fiscal Budget

        Correct Answer:- Option-C

93:-Audit is an instrument of

        A:-Control over expenditure

        B:-Budgetary control

        C:-Appropriation control

        D:-Financial control

        Correct Answer:- Option-D

94:-The statement of GPF annual accounts of subscribers are prepared and dispatched  to them not later than

        A:-31st May

        B:-30th June

        C:-31st July

        D:-31st August

        Correct Answer:- Option-D

95:-Every payment of money on Government account involves

        A:-The submission of claim

        B:-The disbursement of the money claimed

        C:-The incorporation of the transaction in the account

        D:-All of the above

        Correct Answer:- Option-D

96:-Money advanced for miscellaneous purposes under special authority and recoverable in cash  and sums over paid on vouchers other than those for service payments shall be adjusted under the head of A/c

        A:-8550 civil advance

        B:-8250

        C:-7610 Advances

        D:-None of these

        Correct Answer:- Option-A

97:-In the case of companies, the duty of an auditor is mainly in the interest of ____________ who are practically sleeping partners in the business

        A:-Share holders

        B:-Directors

        C:-Promoters

        D:-None of these

        Correct Answer:- Option-A

98:-When a special officer is employed for acquisition of land for any department, the expenditure on pay, allowances, etc of the special officer and his establishment and any expenditure on contingencies is debitable to that department as part of

        A:-Establishment charges

        B:-Contingencies

        C:-Other charges

        D:-Cost of land

        Correct Answer:- Option-D

99:-The acceptance of counterfeit coins or notes shall be regarded as

        A:-Cash

        B:-Bank

        C:-Loss of cash

        D:-Deferred Revenue expenditure

        Correct Answer:- Option-C

100:-Recoveries from private persons or bodies (including local funds, and Governments outside India) should as a general rule be treated as __________

        A:-Revenue

        B:-Deduction from expenditure

        C:-Receipt

        D:-Deferred expenditure

        Correct Answer:- Option-A










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